Beyond Meat Inc (BYND) technical analysis Monday 3rd February 2020

Beyond Meat Inc (ticker symbol BYND) went public on 2nd May 2019. Although some data can be obtained from the candlestick chart, it is likely insufficient to be able to make a reliable educated estimate about long term price movements.

Daily chart

The daily chart of BYND shows a possible support around the $73 area (green line) where it traded sideways on for several months at the end of 2019 before rising (black arrow) and consolidating to form an ascending triangle pattern.

Ascending triangles are typically bullish continuations patterns that are more likely to succeed in breaking out when their pole is bullish – which was the case in this chart of BYND. However prices broke down from the triangle thus negating the ascending triangle pattern.

Hourly chart

It should be noted that shorter time frame charts are less reliable than longer time frame charts and are more prone to changes. My usual practice and personal preference is to use daily and weekly charts for technical case building and investment entry. However as BYND does not yet have sufficient data on the longer time frame, shorter time frame charts will be used.

The hourly chart shows that prices as of market close on Thursday 30th of January 2020 was hovering around a potential area of support (black line). A strong move below this area of support could cause prices to seek lower support areas, the closest being around $89/90 (first green line below the black line) and below that towards the $72/73 area.

Investing strategy

Investors and longer term traders who are bullish on BYND may consider adding to their positions around the potential areas of support.

This being said, it should be noted that there is not sufficient data yet to build a strong technical case for a long term investment and/or longer term trading of BYND.

Trading strategy

Shorter term traders, swing traders, day traders and short term options traders may consider entering long positions around potential supports on rebound and initiate short positions on breakdown from supports.

This goes without saying that each trader should only open their position based on their respective trading plans and chart setups.

Traders should also note the general market condition and volume in the stock and options chains should they choose to consider BYND for short term trading.

Conclusion

As Beyond Meat Inc (BYND) has only been recently listed on the NASDAQ, there is as yet insufficient data to draw a solid technical thesis for a long term investment or trading in this company.

Shorter term trading may be possible, but will inevitably be riskier due to the shorter time frame.

Leave a Reply

Back to Top